BOARD AGENDA ITEM
SUBJECT:
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AR-2025-0178: Presentation by Economic Development Director reviewing Volusia County’s Economic Report and the City of Edgewater’s Economic Report.
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DEPARTMENT:
Economic Development
SUMMARY:
The City of Edgewater and Volusia County both publish quarterly reports indicating the economic health of each respective municipality. Based upon the 1st Quarter, the City issued 100 certificates of occupancy and issued 132 single family home permits compared to last year during the 1st Quarter the City issued 96 certificates of occupancy and issued 96 single family home building permits. The City of Edgewater has seen significant increase in commercial value over last year. At this point last year, the City had issued three commercial building permits estimated to have a value of $1,839,000. The City of Edgewater this year has issued 18 commercial building permits with a value of $29,586,240. Last year, the City of Edgewater only issued 9 commercial permits all year for a value of $5,542,000.
City staff are concerned that there is a lack of new residential communities coming online in the near immediate future. Elegant Manor, Riverfront Estates, Rivers Edge, and Oakleaf Preserve are nearly all complete. Future development that will start or could possibly star this year will include Smyrna Creek Preserve and Edgewater Preserve Phase 2. Smyrna Creek Preserve is comprised of 78 townhome units and Edgewater Preserve Phase 2 is comprised of 132 single family detached homes. We also a 196 multifamily apartment complex starting construction in June on Jones Fish Camp Road. The City of Edgewater will likely not see the benefit of the tax revenue from these developments until 2027. With the other subdivisions winding down, it is likely the City will not see a significant increase in tax revenue until 2027 which will strain the City’s budget.
Fortunately, in April, the 1st building permit for the Parktowne Space Coast Industrial Center was issued. This first building has an estimated value of $8,000,000. Typically, 100 million dollar investment in the City results in roughly 1.4 million in ad valorem tax revenue. Over the past three years, the City of Edgewater has received investments worth over 100 million dollars resulting in approximately a million plus dollars a year of new tax revenue. City staff anticipate another eight commercial site plans will receive approval this year. This could be the 1st year in the City’s history that commercial and industrial investments in the City are greater than the residential investment in the City.
Why is this important to note? There is an ongoing argument revolving the old adage of chicken or the egg. City staff have made the argument over the past decade to Council that density needs to be increased throughout the City in order to spur commercial and industrial development. The City has experienced tremendous residential development over the past 10 years, however the commercial and industrial has typically lagged significantly behind. This gap between commercial and industrial development is closing. The City of Edgewater has less than 10% of land dedicated to industrial and commercial. Industrial and commercial development is not subject to homesteading, provides more tax revenue, and creates employment. A healthy economically viable City or municipality typically will have 20 to 25 percent of the land dedicated to commercial and industrial uses. Based upon the Comprehensive Plan Workshops and the community’s input, the City will be comprised of 13.3% Mixed Use, 3.5% commercial, and 4.7% industrial.
